Types of Forex Orders
Forex Trading Order Types
Welcome back to Forex Trading Basic, our previous hubs were on Why Forex Trading? And Forex Trading Definition, if you missed them you can still has access through the above links. As a forex trader you need to know the kind of Orders that are available for while trading and which order to go for. Below are some order types that you may consider
Market Order
With market order types you buy and sell at the current market price, this is also known as what you see is what you get. You place an order based on the price as shown on the trading platform. This order normally help people to know exactly at what price they buy and sell their currency, with this forex order you do not have to guess where the price will be going next
Limit order
These are order placed by traders to buy or sell at certain prices and normally have the price and duration of the order as oppose to market order. With limit order you either wait for the price to reach the desired figure then place your order or you place your order in advance so that when the exact figure is reached your order get executed
Stop Loss Order
Traders places a stop loss orders to an open position to avoid further losses, if by any chances the price move faster against you, the stop loss order will become your exit strategy. Stop Loss order is a good money management practice at traders are normally advice to have them when executing the previous mentioned orders
Take Profit Orders
This is an order placed when you feel that the price will go against you after reaching some positive level, you put your take profit orders to enable you exit with some profit from that particular trade. As oppose to stop loss order which even though your position has been closed but at a negative figure, you have some few losses to deal with. After looking at some basic order types, we are going to look at factors to consider when selecting a good Forex Broker
